Garuda considers restructuring, bankruptcy, liquidation
Garuda Indonesia plans to halve its fleet
25.05.2021 – 05:14 UTC
Garuda Indonesia (GA, Jakarta Soekarno-Hatta) is considering a significant reduction in its fleet as a cornerstone of its post-COVID restructuring strategy, which could halve the number of its planes to around 70, said chief executive Irfan Setiaputra in a reported internal note. by Bloomberg.
“We have 142 planes, and our preliminary calculation of how we see this recovery has gone, we’re going to be operating with multiple planes no more than 70,” Irfan said.
In a follow-up statement to Indonesian media, Irfan said the downsizing would be adjusted based on the level of demand in the coming years. The figures he gave relate only to the main fleet Garuda Indonesia as well as the regional divisions Garuda Explore (GA, Jakarta Soekarno-Hatta) and Garuda Explore Jet (GA, Jakarta Soekarno-Hatta), but not the low-cost airline of group, Citilink (HQ, Surabaya).
Irfan said Garuda currently operates only 41 aircraft. Many of its aircraft on the ground had been seized by lessors due to defaults. However, he also did not identify the number of affected aircraft …
US DOJ joins investigation into corruption in Garuda’s CRJ1000 deal
10.05.2021 – 08:37 UTC
The United States Department of Justice has requested documents from Bombardier Aerospace regarding the sale of eighteen CRJ1000s to Garuda Indonesia (GA, Jakarta Soekarno-Hatta) in 2011 and 2012, a transaction that is already the subject of a survey by the UK Serious Fraud Office (SFO). , Reuters reported.
Bombardier told the news agency it “didn’t know” until the SFO began work at the end of 2020. The Canadian automaker has since launched an international audit, which has not until ‘now revealed no wrongdoing.
“So far we’ve been studying it since the SFO reached out and now the DOJ is reaching out, but you know from our side that we haven’t found anything. But we will definitely continue to collaborate,” said Managing Director Eric Martel.
Garuda Indonesia acquired the 18 regional jets between 2012 and 2015. It has been trying to retire them for several months, citing their poor adequacy with the Indonesian domestic market. In February 2021, Director General Irfan Setiaputra announced a unilateral return of the twelve planes of the …